Gita Gopinath: Disagreement remains between G7 Economists and IMF reports on global imbalances

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Gita Gopinath: Disagreement remains between G7 Economists and IMF reports on global imbalances — G7 and IMF differ on imbalances

Gita Gopinath, first deputy managing director at IMF, commented on a notable divergence between the G7 Economists report, which she co-authored, and the IMF report versus the viewpoint of Brad Setser regarding solutions to global imbalances.

She emphasized the fundamental disagreement between these assessments and Setser's perspective on what is required to address global economic discrepancies.

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Gopinath has previously written on India's approach to foreign exchange management. In her analysis, she stated that only the Reserve Bank of India can deplete reserves to support the rupee. The discussion comes amid broader debate on policy tools available to address external imbalances.

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